PROSPERITY 2000: Strategy To Achieve Full Employment and Eradicate
Poverty In India By The Year 2000

MODEL DISTRICTS PROGRAMME

I. Introduction

The study of employment potentials in India conducted by the
International Commission On Peace and Food presents a strategy to achieve full employment
in the country and raise all Indian families above the poverty line by the year 2000. The
strategy is based on a shift to intensive commercial agriculture, agro-industries and
agro-exports. It envisions the creation of 100 million new jobs by the end of the
decade--which should be sufficient to provide year-round employment to all job seekers in
the country at wage levels above the poverty line--generation of an additional
Rs 40,000 crores a year of agro-based exports, and production of sufficient food to
meet the full nutritional requirements of the population.

The strategy lays stress on the enormous commercial and technological
potential for accelerated development of horticulture, aquaculture, sericulture, cotton,
sugar, and wasteland development for forestry and fodder crops. It calls for the
establishment of integrated producers' organizations which combine production, processing
and marketing functions and for close linkages between primary producers and private
industry in the form of joint sector corporations.

Implementation of this ambitious programme will require simultaneous
and overlapping efforts by all sections of the society, including government, producers
organizations, private sector, voluntary agencies, educational and research institutions,
the media and the public-at-large. Although the strategy contains specific programmes for
implementation by government agencies, the primary objective of the strategy is to
stimulate a movement of accelerated development activities by the people. The role of
government is mainly that of a catalyst, which educates the population regarding the
potentials, demonstrates new technologies and organizational patterns, facilitates greater
activity through appropriate policy measures and provides the essential supporting
infrastructure.

A key component of the strategy is the establishment of model districts
in different parts of the country to demonstrate and accelerate dissemination of the new
commercial, organizational and technological approaches and to act as centers from which
they can be extended and multiplied throughout India.

II. Objectives of the model districts

The model districts are intended to serve a number of related but
distinct functions:

A. Full employment: The main objective of the strategy is to
generate sufficient jobs to absorb the backlog of unemployed and underemployed persons in
the country and provide job opportunities for new entrants to the labour force. The model
districts will demonstrate that the intensified focus on labour intensive, high value
added crops can rapidly increase the demand within the district for skilled and unskilled,
educated and uneducated workers in agriculture, industry and the service sector.

B. Potentials of commercial agriculture: The district models
will demonstrate the high profit potential of commercial agriculture, which is capable of
generating net incomes 5 to 50 times greater than ordinary crops. Higher incomes for
farmers are an essential prerequisite for improving the incomes of landless families and
marginal farmers engaged as agricultural labourers.

C. Induction of latest technology: The models will demonstrate
and disseminate improved technologies for production, processing and storage of
agricultural produce, such as for hybrid seed production, intensive fish culture and
sericulture.

D. Professional organization of production, processing, and
marketing: The models will include the establishment of professionally-managed
organizations integrating production, processing and marketing. These organizations will
be in the form of cooperatives, producers' societies, corporations jointly owned by
farmers and private business, and institutions operated by voluntary agencies.

E. Marketing direct to consumers: In the case of horticulture
and aquaculture, producer owned and managed marketing organizations will be responsible
for storage, transport and direct sale of produce through retail outlets established in
cities and towns, thereby assuring outlets for the produce and eliminating several stages
of middlemen that commonly take the bulk of the profits.

F. Optimal planning for land and water use: The models will
include micro-level planning at the district level to determine the optimal strategy for
use of land and water resources that will generate the highest incomes for farmers on a
sustainable basis.

G. Catalytic role for government: The models will demonstrate
how government can play a catalytic and supportive role in unleashing development activity
by the population.

H. Implementation thru modified government agencies: The
strategy envisions the restructuring of government agencies related to the major programme
areas--land and water use, horticulture, seeds, fisheries, silk--to make them more
effective instruments for implementation of the programmes.

I. Key role for private sector: The models will demonstrate new
methods for harnessing the professional management and marketing expertise of private
sector corporations to support crop production by small farmers through the establishment
of jointly owned corporations.

J. Public education as critical component: Since the objective
is to create a development movement by the population, a massive programme of public
education is envisioned in conjunction with the field level demonstrations to rapidly
disseminate information on commercial potentials, new technologies and successful
achievements.

III. Components of the model districts

A. Micro level planning cell:
A planning cell will be established in each district to identify the optimum strategy for
utilization of land and water resources for increased agricultural production. The
district plan will provide guidance for the establishment of model projects in the
district. The cell will recommend to farmers the most productive and profitable uses for
their holdings.

B. Irrigation and conservation of water: The strategy calls for
putting an additional 14.5 million hectares under irrigation over the next decade, mostly
by conversion of land presently under dry farming and by utilizing the vast area in the
country that has already been developed for irrigation but is not yet being utilized.
Irrigation potential will vary widely from one district to another. In areas where the
potential has already been developed, emphasis should be placed on measures to conserve
water (e.g. improved water management, percolation bunds and reverse pumping to recharge
aquifers) and measures to improve water productivity (e.g. sprinkler and drip irrigation).
Each model district will incorporate advanced water management technologies and
techniques.

C. Integrated Horticulture Estates: Unplanned production and
poorly organized marketing of fruit and vegetable crops resulting in wide seasonal
fluctuations in supply and pricing have severely limited the development of horticulture
in the country. The strategy calls for the development of eight to ten 1000 hectare
integrated horticulture projects in each district. Production will be planned to include a
wide variety of fruit and vegetable crops with different harvesting cycles around the year
and generating net incomes of Rs 50,000 or more per hectare. Farmers will register
their crops for processing and marketing as is now commonly done for sugarcane. Crop
production will be directly linked to a local processing facility capable of handling up
to 50% of total production during peak seasons. A marketing wing will distribute fresh and
processed products through its own retail outlets within the district and in towns and
cities within the state. These district marketing agencies could eventually feed into a
national marketing grid similar to the one for milk products, as envisioned by the
National Dairy Development Board.

D. Hybrid Seed Units: The availability of sufficient quantities
of high quality hybrid seeds is a major impediment to growth of commercial agriculture in
the country. A number of successful and highly profitable hybrid seed units are exporting
to foreign countries and partially supplying the local market. But demand far outstrips
supply. Each model district will establish a hybrid seed unit to meet the needs of local
farmers for quality seed material. There is also excellent demand for plant propagation
and tissue culture facilities, which have a large export market and can be combined with
the hybrid seed units. Technology for the units may be obtained and disseminated by the
National Horticulture Development Board from existing units within the country or by a
technical collaboration with foreign seed producers.

E. Intensive Aquaculture Estates: Although the average yield of
inland fish farms is less than 2 tons per acre per year, commercially proven technology is
available within the country for achieving yields of 40 to 50 tons and profits of
Rs 2 to 3 lakhs per acre. Each district model will establish 10 aquaculture estates
operated on lines similar to industrial estates. Each estate will consist of 20 acres of
ponds based on intensive fish production technology. The estate management will construct
fish ponds and provide essential infrastructure facilities for water and power. Individual
quarter or half acre ponds will be leased out or sold to farmers. Training and technical
support will be provided by a technical wing attached to each estate. Each district will
also have its own central hatchery facility to produce hybrid fish fingerlings for the
estates and its own feed production plant, both operated on commercial lines by private,
voluntary or public sector institutions.

F. Integrated Sericulture Village Clusters: Sericulture is a
highly profitable, labour intensive activity that can generate wages and profits of more
than Rs 12,000 for every person engaged in it. Presently the various stages of
mulberry leaf and silk production are staggered and scattered, passing through various
middlemen, and minimizing the direct income benefit to actual producers. Each model
district will include two integrated sericulture village clusters in which all the
operations from leaf cultivation, cocoon production and chawki rearing to reeling,
twisting and spinning will be carried out within a small group of adjacent villages. Each
cluster will have 75 to 175 hectares under mulberry cultivation, a community silk worm
rearing centre, a training centre, grainage, and full-time technical staff.

G. Other crops: The strategy calls for expanding the area and
raising productivity of other important crops--cotton, sugarcane, oilseeds and high
yielding varieties of foodgrains. The actual targets of each of these crops in each model
district will depend on the suitability of soil and availability of water in the area and
the average yields already obtained.

H. Wasteland reclamation for forestry and fodder crops: The
strategy includes measures to reclaim wastelands for forest and fodder crops.
Approximately 25,000 hectares should be reclaimed in each district over the decade to
produce industrial hardwoods for paper, fuelwoods and fodder crops to support the dairy
industry. Large contiguous areas can be given on long term lease to agro-industries,
cooperatives, voluntary agencies and other corporations. Smaller portions can be leased to
landless families supported by term loans from financial institutions.

I. Biomass: The model districts will incorporate proven
technologies for recycling and improving the commercial exploitation of biomass products
for production of paper, fuel and domestic energy.

J. Government Model Farms: The existing government farms in each
district will be utilized as centers for demonstrating new crops, new technologies and
higher yields. Each farm will be expected to achieve the yield targets established for the
crops in the district under commercial conditions simulating those of farmers in the area.
Talented, technically-qualified government officers can be invited to apply for positions
on the model farms. Profit sharing incentives and opportunities for accelerated promotion
can be offered for those who exceed the targets.

K. Farm schools: In each block of each model district, farm
schools will be established on lands leased out from farmers for one growing season. Young
farmers from the nearby area will be given field training on new and improved crops and
cultivation techniques and paid for their labour. The farm schools will be financially
self-supporting and will be managed by technically qualified officers who will share in
the profits. A package of practices will be developed for each area demonstrating how
small holdings of various sizes can be cultivated to achieve maximum income for the
farmer.

IV. Selection of districts

A. In the initial year, ten
districts will be selected around the country for participation in the model districts
programme.

B. Since the success of the models will have a major impact on the
success of the overall strategy, the criteria for selection of model districts is very
important and needs to be done in consultation with state governments. The model districts
will be the testing ground for handling new situations and resolving problems, so that
they can be anticipated and smoothly handled at a later stage when the programme is
extended to a wider area. To compensate for the greater uncertainties and difficulties to
be encountered in the first round, the districts selected should be among the strongest in
terms of their basic infrastructure and commercial potential.

C. The selection of districts shall be based on the following
criteria--

The state governments which participate should be fully supportive and enthusiastic
about implementing the programme and be willing to depute from among its most talented
officers to work in the district.

The districts should be agriculturally advanced and have the essential infrastructure
required to support successful implementation of the programmes.

Priority should be given to districts with significant untapped irrigation potential.

Districts should be climatically and agronomically suited from all or almost all of the
crops incorporated in the strategy.

The districts should be centrally located so that they can serve as model centers for
demonstration, training and dissemination of information to other districts in the state.

V. Management of the Projects

A. The district level agency
responsible for implementation of the model district programme must have the authority and
autonomy required for quick and effective action on a high priority basis. This authority
should be vested in a Development Commissioner in each district. The Development
Commission should be a technically-qualified person with proven managerial expertise in
agriculture-related business activities.

B. The responsibilities of the Development Commissioner will include--

Coordinating the efforts and activities of government, farmers' organizations, voluntary
agencies and the private sector.

Arranging for transfer of technology and coordination with central government agencies
such as the Horticulture Development Board and the Central Silk Board.

Engaging successful institutions in establishment of projects in the district.

Assisting farmers with the establishment of producers' organizations.

Approaching financial institutions for investment in the projects.

Establishing and operating farm schools.

C. One objective of the district models is to promote the establishment
of commercially viable, professionally managed, institutions in the agricultural sector,
which operate free from political and administrative interference. As far as possible, the
model projects will be owned and operated by producers, producers' societies,
cooperatives, joint and private sector corporations, and voluntary agencies.

D. In identifying appropriate organizations to operate the model
projects, efforts should be made to involve already successful organizations.

E. Professional managers with commercial experience should be appointed
to direct the model projects.

F. A supervisory board will be constituted to oversee the operation of
the projects in each district. The board will be headed by a Development Commissioner.
Members will include the Collector, and representatives from farmers' organizations,
voluntary agencies, state and central government, and the private sector.

VI. Role of the State Governments

All existing activities of the
state government within the district that are related to the goals and activities of the
model district programme should be directed to provide full cooperation and support to the
programme.

Priority should be given by each state to development of irrigation
potential, provision of power connections and supply, and development of roads and other
infrastructure necessary for successful operation of the models.

State-owned educational institutions within the district, such as
agricultural and engineering colleges, Krishi Kendras, agricultural research stations,
polytechnics, and craftsmen training institutes should be instructed to tailor their
activities to provide educational support for the programme.

VII. Role of the Central Government

A. Although the district models
will need to be adapted to the local agronomic and economic of each state, the district
models will share much in common. All will employ state-of-the-art technology, require a
cadre of technically trained personnel micro-level planning and execution of projects, and
experiment with new types of organizations involving farmers and private business
interests. The districts will also benefit by a continuous sharing of their experiences,
both successes and failures.

B. Overall responsibility for initiation, implementation and
coordination of the model districts programme should be assigned to a central government
agency. The role of this agency will be to

Coordinate with the model district programme the activities of central government
agencies such as the National Horticulture Development Board, the Central Silk Board.

Organize training for model district personnel in all types of skills required for
implementation of the projects.

Ensure the availability within the country of essential inputs required for the
execution of the projects (e.g. feed, seeds, production and processing machinery, etc.)

Oversee and evaluate the performance of the district models against the objectives
established for achievement.

Identify solutions to recurring problems and new approaches to improve the effectiveness
of the programmes and accelerate implementation.

C. Existing central government agencies such as the National
Horticulture Development Board, the National Seeds Corporation, Wasteland Development
Board, the land Resources and Use Commission, and the Central Silk Board will play a key
role in implementation of the strategy. Some institutions will need to be restructured and
streamlined for greater effectiveness. Specific recommendations for improving the
functioning of these institutions need to be developed.

D. Where appropriate, these agencies may establish foreign
collaborations to obtain the most appropriate technology for each programme area (e.g
hybrid seed production, horticulture development, silk production, etc.)

E. These agencies should also be responsible for conducting training
programmes for personnel who will be involved in establishment of the model district
projects.

VIII. Massive Programme of Public Education

In addition to the establishment of field level demonstration and model
projects, a massive programme of public education by educational institutions, the media
and government will be need within each district to rapidly disseminate information on
commercial potentials, new technologies and successful achievements.

IX. Budget

A. The cost of the model district
programmes may vary significantly according to the size, location and prior development of
the districts that are selected. Therefore, detailed budget estimates will have to be
prepared after final selection of the districts.

B. The cost of the programme can be conveniently divided under four
headings

Administrative

: expenditure by the central and state governments and the government
agencies responsible for implementation. Most of these expenses will be covered by
existing budgetary allocations. However, additional costs may be incurred for a central
coordinating agency described in para VII B above and for the activities of central
government agencies in support of the district models.

Infrastructure

--investment in development of irrigation, power, and transport
infrastructure within the district: Expenditure under this head should be covered state
budgetary allocations.

Capital Investment in the Projects

--investment in land, buildings, processing
plants, machinery and equipment directly related to the programmes such as aquaculture
estates, horticulture processing plants, hatcheries and feed plants, etc.: To be financed
by investments by farmers, private companies and financial institutions.

Working Capital for Production

--including costs of cultivation by farmers, recurring
expenses of processing and feed plants, etc.: To be financed by investments by farmers,
private companies and financial institutions.

C. The share of the public sector in the model districts programme will
be for administrative and infrastructure costs and as financial support to farmers and
industry through government financial institutions. Since most of government and
administrative costs can be covered under existing budgetary allocations, the programme
should not present an undue burden on the central and state government budgets.

D. The major investment in the model districts programme will be
contributed by the private sector in the form of investment production facilities and in
costs of cultivation and working capital.

E. The actual quantum of investment will depend on the size of the
district and the final scope of the models. In order to be complete, the model should
saturate the district with programme coverage up to the extent envisioned in the ICPF
study. However, it may be possible to establish the models with a lower level of
investment, demonstrating each of the programmes but not covering the district to
saturation.

F. Project Investment: The direct investment required in
production facilities and cultivation expenses for full and partial implementation of the
model programmes are summarized below and detailed in Appendix I, Table 1 and 2. These
figures do not include the cost of irrigation and land development (except in the case of
wasteland reclamation for forestry and fodder), investment in rural infrastructure and
programme administration.

Full Model

Minimum Model

Investment per
district

Rs 93
crores

Rs 25
crores

Investment for
10 districts

Rs 930
crores

Rs 250
crores

X. Sources of Finance

A. Financial resources for the
district models will be drawn from a variety of sources, including--

Direct investment by farmers in land development and crop cultivation.